Federal government announces new one-time supplement for Canada Disability Benefit recipients

On July 1, the federal government announced that recipients of the Canada Disability Benefit (CDB) will be entitled to a $150 supplement, to reduce costs associated with applying for its pre-requisite, the Disability Tax Credit (DTC) starting September 1, 2026.  

This payment will be available for anyone who was approved for the DTC and is entitled to any amount of the CDB. Anyone who is currently receiving or has received a CDB payment will still be eligible, even if they are no longer receiving CDB payments. 

You do not need to apply for the supplemental amount; it will be delivered as a lump sum to eligible people starting September 2026.  

This change comes with four smaller changes to clarify Canada Disability Benefit Regulations. It is now made clearer that: 

  • CDB payments will not be treated as income under the Income Tax Act 
  • Those that have been granted a waiver that exempts their spouse or common-law partner from having to file an income tax return will be treated as single for the purpose of calculating monthly CDB payment amounts
  • People may apply up to 6 months prior to their 18th birthday
  • Interest will not accrue on debts during reconsiderations, appeals or judicial reviews 

DABC commends the federal government for this positive change, but we recognize that the up-front fees charged by medical practitioners for filling out DTC applications will continue to pose a barrier to accessing the DTC and CDB for many people with disabilities living on low incomes. DABC currently has a DTC Medical Fees Fund, through which you can donate to directly cover these costs for successful applicants to the Fund.  

Information about these changes and the new supplement is available at Canada.ca

Renewing your Disability Tax Credit

If you have restrictions that severely impact your daily life, you may qualify for the Disability Tax Credit (DTC), a non-refundable tax credit that helps to reduce taxes that you or your caregiver owes. The DTC also acts as a gateway to other benefits or financial programs, like the Registered Disability Savings Plan (RDSP) and Canada Disability Benefit (CDB).

Once you submit your application, the CRA will determine whether you’re eligible and and how long your eligibility will last. Some people are indefinitely approved for the DTC; this means you will never have to apply again, unless the CRA asks you to! However, we find that it’s more common for the CRA to approve applicants for a certain number of years, sometimes even when their disability is permanent.

Make sure you know if/when your DTC expires. If your DTC expires, you will need to fill out a new application form. We can help!

Disability Alliance Canada: Social Media and Services Reminder

As many of you know, last year we launched Disability Alliance Canada (DAC). Directly affiliated with and managed by Disability Alliance BC, DAC works to serve people with disabilities across Canada in accessing the benefits to which they are entitled.

We want to ensure that you’re able to stay connected to DAC and are aware of our services!

DAC offers cross-country one-on-one support with the Disability Tax Credit (DTC) and related benefits (including the Canada Disability Benefit (CDB) and Registered Disability Savings Plan (RDSP). We also provide Canada Pension Plan-Disability (CPP-D) assistance.

We are also working on building our social media presence.

You can follow DAC on the following social media platforms, linked below:

Stay tuned for our giveaway!

In early April, we’ll be offering a small giveaway inspired by disability justice, access, and community. Our DAC and DABC Instagram followers will have the opportunity to win an assortment of DABC merch and Alice Wong’s book Disability Visibility. DABC’s IG handle is @dabcsociety – make sure you follow us on both accounts before then!